Before the pandemic, globalization was deemed to be nearing its peak. According to the 2018 studies of Our World in Data, 25% of the total global production was already being exported at that time. By 2019, the World Bank reported the growth of globalization by comparing the global trade value of products being exported around the world. With a value of 6.45 trillion U.S. dollars in 2000 and more than 19 trillion U.S. dollars after 19 years, it is safe to assume that the report was right.
And although the recent pandemic has negatively affected the global economy, the world is slowly recovering from it. With proper planning and foresight, you can use this recovery time to not only get back all your financial losses but possibly gain more and grow even bigger.
With that in mind, here are the reasons to expand your business internationally in 2022.
You’ll have access to a bigger and hungrier market.
Whether you’re providing services or selling products, staying in an already saturated market will only hinder your growth. This is especially true for businesses that are barely getting by.
Starting anew overseas is not only refreshing but also tactically beneficial. If you combine people’s susceptibility to consume anything on-trend and the recent suppression that most people felt because of the social restrictions caused by COVID19, it will be easier to sell your product and services as the new company in town.
You’ll have less competition due to the economic impacts of the pandemic.
Unfortunately, many small to medium businesses were forced to close over the last couple of years. And as much as you hope they can recover, business is still business. You can use this rare chance to start strong without any competitors in mind.
It’s like hitting two birds with one stone. Firstly, you’d be able to beat your original competition by setting up on a global scale. And lastly, you’d be able to maximize the golden opportunity of dominating the market with more than 60% of local competitors unable to operate.
There will be a larger and more diverse talent pool that you can capitalize on.
With a new market to consider, hiring local specialists would be the wiser decision. Not only are they able to speak the local language and have the know-how regarding the business customs of the country, but they also have cheaper expected rates compared to employees in America.
And with multiple companies and businesses closing due to the pandemic, you can expect a lot of people looking for jobs even in 2022. And if you bring a Westernized approach to less progressive countries, even simple mental health benefits can be overly engaging in recruitment.
You’ll be able to enjoy lower operational costs.
This is one of the most important factors to consider. Your business’s operational costs would determine how far you can go when people are still financially recovering.
By choosing a country with generally low costs of living, you’ll be setting yourself up for a financially easier time. You won’t have to spend more on payroll and employee benefits. The amount of rent will also be smaller for the offices and storage. Even your daily operational expenses will be smaller. You also don’t have to worry about logistics since you can find a moving company with international services at low prices.
These will all help focus more of your budget on growing the company’s local marketability and digital presence.
Your branding will be elevated.
A venture’s credibility is directly affected by the area it caters to. By adding the words “global,” “international,” and “overseas” in your business profile, your credibility and marketability increase in the eyes of the consumers.
With your brand visibility reaching a new market, your business recognition grows. And with proper social media management, you can even open more growth opportunities.
The governments abroad may have more business-friendly tax policies and regulations.
Not all countries have taxes as high as the ones in the U.S. With most governments keen on encouraging and supporting the growth of start-ups, tax incentives are there, ready for the picking.
Even with America’s corporate tax rate’s recent decrease from 35% to 21%, compared to Barbados’s 5.5% and Guernsey’s 0%, it’s still quite high.
It will still be easy to manage your operations at home.
This is probably one of the major initial concerns most business owners have. If you still plan on operating locally even after your international expansion, you have less to worry about now. With business digitalization, you can easily improve your remote management systems. Since almost every process can be done online, you can easily manage two bases of operations at once.
The bottom line
Scaling your business globally is a big move that can be financially risky. But with proper planning, meticulous research, and disciplined execution, it can turn your business into a commercial colossus.